Smt. M. Lakshmi Vs Sri.N. Krishnachari

THIS REGULAR SECOND APPEAL IS FILED UNDER SEC.100 OF CPC., AGAINST THE JUDGMENT AND DECREE DATED 31.10.2023 PASSED IN RA NO.70/2022 ON THE FILE OF THE PRINCIPAL DISTRICT AND SESSIONS JUDGE, BENGALURU RURAL DISTRICT BENGALURU, ALLOWING THE APPEAL AND SETTING ASIDE THE JUDGMENT AND DECREE DATED 11.04.2022 PASSED IN OS NO.971/2013 ON THE FILE OF THE V ADDITIONAL SENIOR CIVIL JUDGE BENGALURU RURAL DISTRICT, BENGALURU.

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THIS APPEAL, COMING ON FOR REPORTING SETTLEMENT, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

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NC: 2026:KHC:20607 RSA No. 128 of 2024

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HC-KAR

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CORAM: HON'BLE MR. JUSTICE PRADEEP SINGH YERUR

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ORAL JUDGMENT

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Learned counsel for appellant as well as learned counsel for respondent No.1 alongwith appellant and respondent No.1 are physically present before the Court.

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Heard learned counsel for the appellant as well as learned counsel for respondent No.1.

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The parties to the proceedings shall be referred to as per their status before the trial Court.

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This appeal is preferred by the appellant, who was defendant No.2 before the trial Court in O.S. No.971/2013. Respondent no. 1 was the plaintiff and Respondent no. 2 was the 1^st defendant, the original owner of the suit schedule property. Since Respondent No.2 died, his legal representatives are brought on record as Respondent Nos.2(a) and 2(d) as per the order dated 10.01.2025.

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Plaintiff filed a suit against the defendants seeking

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for the relief of specific performance of the agreement of sale dated 05.02.2004 and for a direction to the defendants to execute the sale deed by receiving the balance sale consideration amount. The said suit came to be dismissed for the relief of the specific performance. However, plaintiff was granted the relief of refund of the earnest money of Rs.1,20,000/- with interest at the rate of 12% per annum from the date of alleged agreement of sale dated 05.02.2004 till the date of the order of the Court and also entitled for future interest at the rate of 6% per annum till realization of the entire amount.

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Aggrieved by the judgment and decree rendered

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by the trial Court, the plaintiff and the defendant no. 1 preferred R.A. No.70/2022 and R.A. No.92/2022 respectively before the Prl. District & Sessions Judge, Bengaluru Rural District, Bengaluru. The first appellate Court allowed the appeal preferred by the plaintiff in R.A No. 70/2022 and dismissed the appeal preferred by the

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1^st defendant in R.A No. 92/2022 and the judgment and

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decree passed by the trial Court came to be set aside and the suit of the plaintiff came to be decreed with costs and the sale deed executed by defendant no. 1 in favour of

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defendant no. 2 dated 23.2.2004 was held as not binding on plaintiff and defendant No.1 was directed to execute a sale deed in favour of plaintiff by receiving the balance sale consideration amount of ₹45,000/- within one month from the date of the said judgment, failing which, plaintiff was given the liberty to get the registered the sale deed executed in his favour by due process of law. It is this judgment of the first appellate Court that is challenged by defendant no. 2 in this appeal.

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During the pendency of this appeal, the legal

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representatives of respondent No.2/defendant No.1 were brought on record as Respondent Nos.2(a) to 2(d). Respondent No.1/plaintiff has appeared through an advocate. Legal representatives of Respondent No.2/

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defendant No.1 though served with notice, remained unrepresented.

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Today, the parties to the proceedings, i.e. the appellant/defendant No.2 and respondent no. 1/plaintiff have filed a compromise petition before this Court under Order XXIII Rule 3 r/w Section 151 CPC, to settle the matter amicably and to resolve the dispute once for all.

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The legal representatives of 2^nd respondent/ defendant No.1 despite the service of notice, remained unrepresented and in fact, respondent No. 2/original defendant no. 1, had executed a registered sale deed dated 23.2.2004 in favour of appellant/defendant No. 2, and the same is not disputed.

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The parties to the proceedings i.e, the

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appellant/defendant No.2 and the respondent No.1/ plaintiff have deliberated and after mutual discussions, in order to put an end to the litigation, have arrived at certain terms and conditions by entering into this

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compromise petition. The terms of compromise petition reads as under:

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"The parties hereto, upon mutual deliberation and without any coercion, undue influence or misrepresentation, having agreed to settle the present dispute amicably, state that they have arrived at the following terms of compromise:

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1.That the parties have jointly agreed to sell the suit schedule property described herein below hereinafter referred to as 'the Schedule Property' to a third party purchaser at the prevailing current market value of the Schedule Property.

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2.That the Schedule Property shall be sold by the parties jointly or through a mutually agreed mechanism/process to any willing third party purchaser at the current market value of the Schedule Property.

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3.That out of the total net sale proceeds realised from the sale of the Schedule Property to the third party after deducting any brokerage charges which would be mutually agreed to, the sale proceeds shall be distributed between the parties in the following proportions:

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a) 60% (Sixty percent) of the net sale proceeds shall be paid to the

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Plaintiff/Respondent No. 1 (Sri. N. Krishnachari).

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b) 40% (Forty percent) of the net sale proceeds shall be paid to the Appellant/Defendant No. 2 (Smt. M. Lakshmi).

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4.That Respondent No.2/Defendant No. 1 is deceased and at the time of executing registered Mortgage deed dated 20.11.2003 in favour of Plaintiff/ Respondent No.1 delivered possession of the suit schedule property and pursuant to his execution of absolute registered Sale Deed dated 23.02.2004 in favour of the Appellant/Defendant No.2 and delivered possession of the suit schedule property, his legal heirs have no right, title, interest or claim whatsoever over the suit schedule property or over any portion of the sale proceeds arising out of the compromise.

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5.That the parties hereby jointly and irrevocably authorise each other to cooperate fully for the purposes of executing all such deeds, documents, applications, NOCs and any other writings as may be necessary or expedient to complete the sale of the Schedule Property in favour of the third party purchaser, including appearance before the concerned SubRegistrar for registration of the Sale Deed.

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6.That pending identification of the third party purchaser and completion of the sale, the parties agree to maintain status quo with respect to the Schedule Property and shall not create any encumbrance, llen, mortgage or third party interest there upon.

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That upon execution of the sale deed in favour of the third party purchaser and receipt of their respective shares by Respondent No.1/Plaintiff and the Appellant/Defendant No. 2, Respondent No.1/Plaintiff shall have no further claim whatsoever for specific performance of the Agreement of Sale dated 05.02.2004 or any other relief against the Appellant/ Defendant No. 2 or Respondent No.2. The Appellant/Defendant No. 2 shall relinquish all her rights, title and interest in the suit schedule property in favour of the third party purchaser.

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That the parties agree that the present Compromise Petition shall be filed before this Hon'ble Court and upon the Court recording the same as lawful, the present R.S.A. No.128/2024 shall stand disposed of in terms of this compromise. Further in view of this compromise the respondent No.1 has agreed to withdraw the RSA No.379/2022 filed by him before this Hon'ble Court.

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9.That the parties further agree that in the event any party fails to abide by any of the terms of this compromise, liberty is reserved to the other party to revive the present Regular Second Appeal and also said RSA No.379/2022 and seek appropriate reliefs before this Hon'ble Court as if no compromise had been entered into.

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That all costs and expenses of the present proceedings before this Hon'ble Court shall be borne by the parties themselves."

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Learned counsel for appellant and learned counsel for respondent No.1 contend that they have agreed to jointly sell the suit schedule property to a third party purchaser at the prevailing market value and out of the sale proceeds realised from the said sale to a third party, after deducting the brokerage charges, which would be mutually agreed to by both sides, would distribute the net sale proceeds in the manner of 60% to the respondent no. 1/plaintiff and 40% to the appellant /defendant no. 2.

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It is also submitted by both the learned counsels

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that till the suit schedule property is sold to third party, both the parties agreed to maintain status quo with regard to encumbrance of the suit schedule property.

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The parties to the proceeding i.e., the appellant and respondent no. 1 are physically present before the Court and they are identified by their respective counsels. This Court enquired with them with regard to the terms and conditions entered into in the compromise petition and sharing of the sale proceeds of the suit schedule property to the extent of 40% to the appellant and 60% to the respondent no. 1, which is agreed. Together they submit

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that they have voluntarily executed the compromise petition and affixed their signatures without coercion or undue influence. They agree to abide by the terms and conditions of the compromise petition.

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In view of the above, I proceed to pass the following:

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O R D E R

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i) The appeal is disposed off , in terms of the compromise petition.

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ii) The impugned judgment and decree dated 31.10.2023 passed in R.A. No.70/2022 on the file of the Prl. District & Sessions Judge, Bengaluru rural district, Bengaluru, and the judgment & decree dated 11.4.2022 passed in O.S. No.971/2013 on the file of the 5^th Addl. Senior Civil Judge, Bengaluru rural district, Bengaluru, are hereby modified.

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iii) Parties shall abide by the terms and conditions of the compromise petition entered into today.

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iv) The terms and conditions of the compromise petition shall form part of the Decree.

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v) In view of the settlement by way of compromise petition, the Registry is directed to refund the Court fee as per the Karnataka Court Fees and Suits Valuation Act, 1958 in favour of the

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